What are Flexible Spending Accounts?
The health care flexible spending account (FSA) and dependent care assistance program (DCAP) can help you save money on medical and dependent care (typically child care) expenses that you are already incurring. Use these accounts to leverage your household’s savings. By contributing a portion of your pay into an FSA or DCAP on a pre-tax basis, you may save from 25% to 40% on the cost of eligible expenses you are already incurring.